Suppose a cafe owner wants to switch to automatic espresso


Problem

Suppose a cafe owner wants to switch to automatic espresso machines instead of paying baristas to pack the coffee grounds by hand. The machines are twice as effective as a human; the fixed cost per machine equals the yearly wage of one employee. Explain how the equilibrium price and quantity of labor will change.

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Microeconomics: Suppose a cafe owner wants to switch to automatic espresso
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